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FireGeek
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Is the cost basis (blank on 1099-B) of an escrowed stock sale distribution paid out in 2017 the original amount held in escrow in 2014?

A portion of privately held company stock sold in 2014 was held in escrow until 2017.  Cost basis of all stock sold was recorded in 2014 tax year.  What was paid out in 2017 was less than that withheld in 2014. 

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Is the cost basis (blank on 1099-B) of an escrowed stock sale distribution paid out in 2017 the original amount held in escrow in 2014?

You probably reported this sale incorrectly in the first place as a sale of stock with an amount in escrow held back would ordinarily be reported using the installment sales method and you'd only use a portion of your original basis against the amount of proceeds received in 2014.

Be that as it may, if you used all your basis when reporting the sale amount in 2014 against the proceeds received in 2014 then you have no more basis.  The entire amount received in 2017 is gain.

Tom Young

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3 Replies
Anonymous
Not applicable

Is the cost basis (blank on 1099-B) of an escrowed stock sale distribution paid out in 2017 the original amount held in escrow in 2014?

what did you report in 2014 on your return with regards to proceeds and cost?
FireGeek
New Member

Is the cost basis (blank on 1099-B) of an escrowed stock sale distribution paid out in 2017 the original amount held in escrow in 2014?

I reported 100% of what was indicated on 1099-B rec'd in 2014 as proceeds, and information provided by company acct (and verified by my records) regarding cost basis over the years of purchase

Is the cost basis (blank on 1099-B) of an escrowed stock sale distribution paid out in 2017 the original amount held in escrow in 2014?

You probably reported this sale incorrectly in the first place as a sale of stock with an amount in escrow held back would ordinarily be reported using the installment sales method and you'd only use a portion of your original basis against the amount of proceeds received in 2014.

Be that as it may, if you used all your basis when reporting the sale amount in 2014 against the proceeds received in 2014 then you have no more basis.  The entire amount received in 2017 is gain.

Tom Young

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